MARKET REPORT COMPACT PLANT
“Dynamic and exciting”
Alan Guthrie talks to Hitachi Construction Machinery (UK)’s new CEO about the general compact plant market and the manufacturer’s future plans.
While being undeniably one of the most recognisable construction machinery brands, it could be argued that Hitachi has somewhat hidden its light under the proverbial bushel in terms of its smaller machinery, such as its sub 6-tonne mini excavators. This can be understood better, however, when one considers the sheer breadth of its range, which includes excavators weighing up to 90 tonnes and above, wheeled loaders, and rigid dump trucks.
The UK house building market has remained strong.
Six months ago, Hitachi Construction Machinery (UK)
appointed a new Chief Executive Officer when Dave Roberts joined the operation based in Hebburn, near Newcastle-upon-Tyne, having previously been MD of Kubota (UK) Ltd.
To briefly summarise Hitachi’s history in the UK, its machines were first sold in this country from 1972, but it was Bridgwater-based HM Plant that really put the Hitachi brand on the map after a management buyout in 1993, led by John Jones, and ten years later Hitachi decided to invest in the business, eventually becoming a wholly owned subsidiary of Hitachi Construction Machinery Europe in 2007. The operation had relocated to Hebburn in 2004 on a seven- acre site, including a production facility which currently has up to 26 bays available for the necessary customisation that most machines require, from painting in corporate colours to the installation of hitches, green beacons, and other ancillaries. The site offers easy access to the Port of Tyne where most machines arrive from the Japanese and Dutch factories. The UK business also has nine branches and two sub-dealers to give national supply and service backup.
Closer to construction
Dave Roberts held various senior management positions with Kubota (UK) Ltd over a 20-year period. In 2010 he moved to Farol Ltd, a multi-depot John Deere dealer, as Operations Director, but he returned in 2012 and the following year became one of Kubota’s first non-Japanese managing directors. “During my last six years at Kubota I got closer to the construction machinery market, besides agriculture and grounds care equipment, and I found it particularly
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dynamic and exciting. Also, because Hitachi runs a consolidated operation in the UK, it is both manufacturer and dealer in one business, which means we take full responsibility for the supply and support of machines for their complete life cycle, and we can feedback in-field experience direct to the factories quickly. So when the opportunity arose to join Hitachi, it was a great chance to explore this further and my career background gave me the necessary experience from both dealer and manufacturer. I am looking forward to building on the success and hopefully I and the team can take HCM (UK) to the next level.”
Dave Roberts says that Hitachi prides itself on the ‘muck and bullets’ strength and productivity of its machinery which has made it popular with contractors and plant hirers. A large proportion of the manufacturer’s machines below 6 tonnes are sold to plant hirers specialising in larger models, but who have customer requests for smaller machines which can be supplied as part of the package. “The breadth of our range means we can cater for virtually all types and stages of construction projects. We are very strong above 13 tonnes, but below this we definitely have some opportunities to grow in terms of volume sales.”
Strength of the industry
Market data suggests that sales of minis up to 6 tonnes in the UK for 2018 could reach approximately 13,000, a slight increase on the previous year which reflects the ongoing strength of the construction industry, notably house building. “This could represent a peak,” said David Roberts. “No one knows what impact Brexit will have. There could be a dip beforehand, as there was prior to the most recent general elections, the Brexit referendum and the Scottish independence referendum. However, after the Brexit referendum there was a bounce back - within a month sales were above what they had been previously.
Hitachi Construction Machinery prides itself on the ‘muck and bullets’ strength of its product range.
MOVING FORWARD WITH CONFIDENCE
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